Many people experience some kind of financial hardship in their life. If you are finding it difficult to make your mortgage payments, it’s time to take action now. The longer people wait to contact their loan servicer, the fewer options they will have to reduce their Kansas City mortgage rates and overall monthly payments. Depending on your situation, you may have a few different choices to choose from.
The most common way to reduce Kansas City mortgage rates is refinancing. Refinancing your home loan allows you to decrease your interest rate and monthly payment. Keep in mind refinancing will require you to:
If you would like to refinance but your home value has diminished, ask your loan officer or servicer if you qualify for the Home Affordable Refinance Program (HARP). HARP is an option for homeowners who currently owe more on their house than it is actually worth.
If you are unable to refinance, consider loan modification. A loan modification is a permanent change in one or more of the loan’s terms, granting the borrower a mortgage payment they can afford. With HAMP, your loan is modified to lower your monthly mortgage payment to no more than 31% of your gross monthly income. If you are eligible, this modification will permanently change the original terms of your home loan. This may be an option for you if you are:
FHA, VA and USDA also offer modification programs for Kansas City mortgage rates. Before asking for a loan modification, be prepared to show your loan servicer that you are currently making an honest effort to pay your mortgage. If you can prove that you have reduced other expenses in order to pay your debt, they may be more likely to negotiate with you. Generally, the main goal is to lower your Kansas City mortgage rate which in turn decreases your monthly mortgage payment. However, you may also be able to extend the term of the loan, or add missed payments to the loan balance.
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